New York, NY (PRWEB) June 30, 2012
According to Michael Lombardi, lead contributor to Profit Confidential, the major issue concerning the housing market index is a recent mortgage settlement that will alter the U.S. housing market in the coming years. Now that the lawsuit is settled, Lombardi believes foreclosures will keep prices down.
In the article, "U.S. Housing Crisis Getting Worse, Not Better," Lombardi comments that the $25.0-billion settlement with the banks that took place in April allowed for the foreclosure increase in May by 9.1% from April’s level, the first increase in two years.
"These new foreclosed properties slowly making their way onto the housing market will result in greater housing inventory and will drag down home prices," says Lombardi. "If May is any indication of how the rest of 2012 will go, then home prices are going to have real trouble rising in this environment."
According to Lombardi, there are other troubling statistics that will ensure continued pressure on home prices and the housing market in general.
"There are over 2.8 million homeowners behind more than a year on their mortgages," says Lombardi. "Homeowners who are this far behind with their mortgages usually never catch up. Their homes either go up for auction or go into foreclosure, or the homeowner eventually just walks away."
Lombardi believes this will add to inventory in the housing market and prevent home prices from rising.
"An alarming one in five homeowners has been more than 90 days delinquent on their mortgage since 2007," says Lombardi. "These people cannot qualify for a new mortgage at a lower rate because of their poor credit score."
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.